Loan Comparison Calculator: Installments, Total Cost and APR

How to use it

Choose how many loans to compare, two or three.
For each loan, type the amount, the yearly rate and the term in months.
Add the one-time fee, any monthly charge and any tax on the interest from the offer. Leave them empty when there are none.
Read the verdict, then the table: the installment, the total repaid, the cost of credit and the APR including fees.

How the installment and the APR are calculated

The installment is the equal monthly payment that repays the loan at the monthly rate, which is the yearly rate divided by 12. A tax on the interest raises the monthly rate before the installment is worked out, so the tax is paid inside the installment.

The APR including fees is the rate at which the money you receive, the loan less the one-time fee, equals the present value of the installments and the monthly charges. Wikipedia's Annual percentage rate page describes this form, which the European Union uses. The effective yearly APR is the monthly rate compounded over twelve months; the nominal APR is the monthly rate times 12.

R = P × i ÷ (1 − (1 + i)^−N)
Loan − Fee = Σ (R + monthly charge) ÷ (1 + x)^k, for k = 1 to N
Effective APR = (1 + x)^12 − 1
Nominal APR = 12 × x
Cost of credit = total repaid − (loan − fee)

P   loan amount        N   number of months
i   yearly rate ÷ 12, times (1 + tax)     x   monthly APR

Why the APR can rank loans differently from the rate

A fee is paid once but the APR spreads it over the whole term. A short loan with a high fee can therefore have a higher APR than a longer loan at a higher rate. Compare the APR and the total repaid for loans of the same amount and length.

What this comparison does not include

Early repayment charges, insurance you must take out, and any fee that is not part of the offer.
Changes of rate during the term and penalties for late payment.
Any tax other than the one you enter: the tool does not know the current rates.

Worked example: two loans of 200,000 over 48 months

Loan 1 is 200,000 at 30% a year with a one-time fee of 9,000. Its installment is 7,201.20 a month, so the 48 installments repay 345,657.54 and the cost of credit is 345,657.54 − (200,000 − 9,000) = 154,657.54. Its APR including the fee is 38.32% effective, or 32.88% nominal.

Loan 2 is 200,000 at 31% a year with no fee. Its installment is 7,317.99 a month, 351,263.32 in total, and its cost is 151,263.32. Its APR is 35.81% effective, or 31.00% nominal. It is the cheaper loan, although its rate is higher.

	Loan 1	Loan 2
Monthly installment	7,201.20	7,317.99
Total repaid	345,657.54	351,263.32
Cost of credit	154,657.54	151,263.32
APR including fees (effective)	38.32%	35.81%

Frequently asked questions

Why does a fee raise the APR?

The fee comes out of the money you receive, so you get less than you owe. The APR is the rate that makes the net sum you receive equal the discounted installments, so a fee has to be matched by a higher rate.

Is the APR the same as the interest rate?

No. The interest rate covers only the interest on the balance. The APR adds the one-time fee, the monthly charges and the tax, so it is higher whenever any of them are charged.

Why should I compare loans of the same amount and term?

The APR depends on the amount and the length of the loan and on the size of the fee. Two loans of different sizes or terms cannot be ranked by APR alone, so also compare the total repaid for the same amount and term.

Which APR is the binding one?

The figure in the lender's loan offer and contract, under the rules that apply where you borrow. This tool gives an estimate from the figures you enter.

Does the tax field have a default rate?

No. Taxes on interest depend on the lender and the product, so the field starts empty and only the rate you enter from the offer is used.

Are the figures I enter sent to a server?

No. The calculation runs in your browser, and nothing you enter is sent to us.

Sources

Figures and text last checked on Tuesday, November 10, 2026.

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